Are you looking for the solution to Question number 69 of the Accounting for Share Capital chapter of TS Grewal Book 2023-24 Edition CBSE Board?
‘Venus Ltd.’ was registered with an authorized capital of ₹ 40,00,000 divided into 4,00,000 equity shares of ₹ 10 each. 70,000 of these shares were reissued as fully paid to ‘M/s Star Ltd.’ for building purchased from them. 2,00,000 shares were issued to the public and the amounts were payable as follows:
|On Application||₹ 3 per share|
|On Allotment||₹ 2 per share|
|On First Call||₹ 2 per share|
|On Second and Final Call||₹ 3 per share|
The amounts received on these shares were as follows:
|On 1,00,000 Shares||Full amount called|
|On 60,000 Shares||₹ 7 per share|
|On 30,000 Shares||₹ 5 per share|
|On 10,000 Shares||₹ 3 per share|
The directors forfeited 10,000 shares on which only ₹ 3 per share were received. These shares were reissued at ₹ 121 per share fully paid. Pass necessary Journal entries for the above transactions in the books of Venus Ltd.
[Ans.: Capital Reserve – ₹ 30,000.]